‎5 Quick takeaways about the market ahead:

5 Quick takeaways about the market ahead – from John Mcgraths Facebook page

1. Interest rates will fall further. Aussie bonds rates are around 2.5%. This suggest that borrowing may come down under 5.0%. The professional markets rarely get it wrong. Good for FHB, investors & upgraders.

2. The Australian share market is around 35% off its all time highs. The US is now only 5% off & the FTSE around 16% down. So this suggest as the AUD comes down we should see a catch up in the ASX. Good for top end properties.

3. 41% of new mortgages last quarter (AFG) were to private investors. That means people are seeing property as again a blue-chip investment & a reason to re-deploy their cash savings in a better growth place.

4. Auction clearance rates have seemingly settled in around 60%-65%. This is right in the middle of what you would call ‘steady state’. A good sign.

5. Nobody wants to ring the bell but all signs are that we are beyond the worst. Most Australians de-leveraged during the GFC so are in better shape in many ways than beforehand assuming they kept their jobs.

Posted on October 8, 2012